Deutsche Bank lowered its rating on NRG Energy (NYSE: NRG) from Buy to Hold while it raised the price target from $20 to $24 on limited upside post share rally.

Deutsche Bank said, "We are downgrading NRG to Hold as the stock has now rallied significantly from the April low on a combination of rising gas prices, excitement over summer optionality in ERCOT, and now the benefits of the GEN acquisition. We view the GEN deal as value neutral to key financial metrics on a recurring basis, while diluting NRG's upside optionality in the ERCOT market. We view merger synergies as achievable and found NRG and GEN's standalone 2014 financial projections to be encouraging. That said, following recent strength and given still uncertain gas and power markets, we no longer see material upside in NRG stock and move to the sidelines."